Illinois Proposed Changes to Regulations on Holder Reporting

Chicago, Illinois LandmarksUnclaimed property reporting is driven by state statutes, while additional guidance may be given in the form of state regulations. Illinois is proposing a change to their regulations governing unclaimed and abandoned property reporting.

Illinois Regulations Section 760.21 covers reporting of unclaimed property by holders. Subsection (a) says that business associations may not be required to file a report if certain conditions are met, specifically small businesses with no property to report. This is intended to save the state from the administrative burden of handling many negative or zero reports from small businesses every year, as well as to ease the compliance burden for the businesses themselves.

Illinois is proposing adding subsection (b) and re-lettering the remaining subsections. The new subsection (b) would require name, Social Security or tax ID number, if known, and last known address for the owner for all properties valued at $5 or more. Further, it would require life insurance companies to also include the identifying information for both the insured and any beneficiary or annuitant in their records.

This proposed change would generally follow the statutory requirements, with the exception of the $5 threshold. In the statute, the threshold is $25.